Better Buy: Southwest Airlines vs. Delta Air Lines
The airline business has been devastated by the COVID-19 pandemic, which caused travel demand to fall to near zero in March and April and has forced airlines to lever up to avoid bankruptcies. The industry expects second-quarter revenue to fall by up to 90% year over year, and airlines are warning it will take years for their schedules to recover to pre-pandemic levels.
Investors, including Warren Buffett, have dumped airline stocks and headed for the emergency exits. And months into the pandemic, cases are continuing to spike in some parts of the U.S., creating uncertainty about a possible recovery.
There are good reasons for investors to avoid this sector entirely, but for those tempted to be greedy when others are fearful, it's best to stick to top performers instead of buying a basket including both the industry's top, and riskiest, companies.
Source Fool.com
